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Policy recommendations
Gender in Entrepreneurship
IndonesiaNining I. Soesilo,
UKM Center FEUI
www.ukm-center.org
www.icpps.org
+62811179997
Presented on ADB OECD February 28 2012 in Manila
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The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of theAsian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee
the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Thecountries listed in this paper do not imply any view on ADB's part as to sovereignty or independent status or necessarilyconform to ADB's terminology.
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From Survival to Entrepreneurship
Entrepreneurs contribute up to 56.7% of GDP, account 19,4% of total export, and employ 79 millions ofwork force
95,7% Usaha Mikro 47,70 thousand
4,05% Small
Entrepreneur
2,02 thousand
Medium Entrepreneur 0,24%=
120,25 thousand
Large Entrepreneur 0,01%
4,52 thousand
ENTREPRENEURS that are comparable with other countries are only 0.18%,
there is missing middle,
Source: from BPS 2007, BERITA RESMI STATISTIK No. 28
Survival
Entrepreneur
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Framework of Government of Indonesias
Policy for Entrepreneurship (no gender
related policy)
Level
Central Government
Policy Sectoral PolicyBank
Regional
Government
survival
cluster 1
Direct cash in
aid
Similar to direct
cash in aid
cluster 2
PNPM: National
CommunityDevelopment
Program
KUBE-Ministry
of Social affairand other
Ministries
Similar to PNPMlike PPMK in DKI
Jakarta
micro
entrepreneur
cluster 3
KUR: People's
Business Credit
through Bank in
which 70%credit risk are
guaranteed by
government
PKBL_Ministry
of State ownCompany
State own
bank:People's
Business Credit
through Bank inwhich 70% credit
risk are guaranteed
by government
KUR is now
disbursed in
cooperationwith Regional
Development
Bank
SME Law 20/ 2008 for SME
Commercial
lending
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PKBL: Policy for Entrepreneurship
Development in Indonesia from
Ministry of Sate Owned Enterprise
Ministry of State owned Company PolicyNo. Per-05 - 2007PKBL compliance to laws and regulation
PKBL= Partnership and Environment Fostering Program
In year of 2011, Ministry of State State Owned Company setthe amount of money for revolving fund program (PK) forSME funding is Rp 2,05 billion
In this policy, no words about collateral being mentioned. Nowords about gender is mentioned
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Program to develop entrepreneurship in Universitywith grant for the selected proposal with the amountof Rp 15 million
Program for developing internship on University
Business Consultancy dan job placement (Konsultasi
Bisnis dan Penempatan Kerja) No words about gender
http://www.dikti.go.id/dmdocuments/PROGRAM%20PENGEMBANGAN%20BUDAYA%20KEWIRAUSAHAAN.pdf
Policy for Entrepreneurship
Development in Indonesia from
Directorate General of High Education
Ministry of National Education
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Indonesia Position:Indonesia GEI rank is 55 ( second worst after Lao, the indexs
range of values is from 0 to 100, with the lower values indicating
greater inequity), Empowerment only 16 (the lowest in Asean),Education is 3rd highest in Asean
Case Study: Two Level of Entrepreneurship: survival andentrepreneurial level
Case study of Survival level :
Pilot Project in Rangkapan Jaya Depok
CSR of Carrefour Indonesia
Komida
Case study of entrepreneurial level: PKBL for MSME: PKBL Rekayasa Industri
PKBL Antam
PKBL Mandiri
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Assisting at the Survival Phase: poverty alleviation
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Assisting at the Survival Phase: Performing
Debtors (PD) According to Sex in Husnayain-
Carrefour Microfinance
Average Loan Rp 2,183,663,-
Conclusion: Female are better performing debtors than male even
though they get less share
Sex Person % Sex PD %PD
Female 63 31.30% 45 71.40%
Male 138 68.70% 86 62.30%
Total 201 100.00% 131 65.20%
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Assisting at the Survival Phase: University
involvement in commercial Grameen Bank
(Komida) for all poor women debtors
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h l h
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Assisting at the Survival Phase:
University involvement in commercial
Grameen Bank (Komida)
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i i h i l h id
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Assisting at the Survival Phase: Komida
now has 44 branches all over
Indonesia
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Assisting at entrepreneurial phase: the Micro
Small Medium Enterprise Segmen in monthly
Exploring SMEs event at the University; it isalways started with national anthem
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Performing Debtor
According to Sex in PKBL
sex person %person PD %PD
female 32 37.64% 20 62.50%
male 53 62.35% 18 33.96%
total 85 100% 38 44.71%
sex person %sex PD % PD
female 8 30.77% 7 87.50%
male 18 69.23% 13 72.22%total 26 100.00% 20 76.92%
PKBL PT REKIND UKM Center FEUI, Average Loan Rp 47,176,471
PKBL PT ANTAM, Average loan Rp 29,830,769
Conclusion: Female are perform better than male even though they
get less share
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sex person % sex PD % PD
female 27 45.0% 15 55.6%
male 33 55.0% 27 81.8%
total 60 100.0% 42 70.0%
Performing Debtors (PD) According to
sex in PKBL Bank Mandiri - UKM
Center FEUI
Average Loan Rp 13,616,667,-
Conclusion: Female are perform worst than male even though they
get less share, it might be because Bank Mandiri do the autodebet in
repayment?
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Competitiveness Indonesia: wages in garment is
one of the most expensive one in Asia
Wages in the Garment Industry [Monthly in US $]Bangladesh 43*
Cambodia 61*
China 150-200
India 50Indonesia 155
Vietnam 63-90*
*= Minimum wage as of August 2010. Vietnam has a range
for minimum. China is the reported prevailing wage.Indonesia is the wage for industrial workers in June 2010.Garment workers wages have generally been close to theaverage wage in industry..
Source: Gustav Papanek 2010 16
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Indonesia is keeping on loosing job
Country
1989 1998 2008 2009
US$Billion
%share
US$Billion
%share
US$Billion
%Share
US$Billion
%Share
World 193.4 100 335.8 100 612.1 100 526 100
Bangladesh 0.8 0.4 4.2 1.3 12.0 2.0 11.7 2
China 15.4 8.0 42.9 12.8 185.2 30.3 167 31.7
Indonesia 2.0 1.0 5.0 1.5 10.0 1.6 9 1.7
India 3.9 2.0 9.3 2.8 21.1 3.5 20.5 4
Vietnam 0.0 0.0 1.5 0.4 10.6 1.7 10 2
Cambodia 0.0 0.0 0.0 0.0 3.7 0.6 3 0.5
in Textiles, garments: Indonesia: a 1% gain in share of the world market= about 1.5
million jobs (Papanek 2011);
Indonesia only 22,67% of laborers work in manufacturing and female owners only
38,07% (Tulus Tambunan 2012)
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In 2011: Indonesia loss the share of 23,31% on bilateral trade with Cina in 2011 , if
for from this amount textile of Cina share is 18.6% (according Indonesian Trade
Ministry's Foreign Trade chief Deddy Saleh), hence 65,047 people are loosing job
from RI s loosing share with China
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Indonesia is keep on loosing job
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Conclusion & Recomendation
Women most likely have reliable and prudent when given a chanceto receive credit; unfortunately the number of female debtoralways less than male debtor (for non homogenous gender type ofcredit)
Because Indonesia is keep on loosing job (while male have more
share in funding), give amore chance to women entrepreneur inIndonesia
Give more pro women policy for raising the role of womenentrepreneurs that are missing in Indonesia
Empowerment in GEI isonly 16 (the lowest in Asean), hence theempowerment for entrepreneurs in Indonesia should be given
more can be done (1)through grameen type activity of credit forpoverty alleviation all forwomen as well as (2) throughentrepreneurship assistance, give more chance for women
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Ready for further discussion
Thankyou
Nining I. Soesilo,
UKM Center FEUI www.ukm-center.org
www.icpps.org
+62811179997
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